Are you in a crisis and need money fast? Getting a conventional loan from a bank may take time, and it needs a high credit score. If this is not an option, a payday loan may seem like a solution. Statics reveal that more than 12 million US citizens apply for payday loans every year.
Lenders that offer this type of loan often target people with financial difficulties who have low credit limits. It is possible for you to get a one-hour payday loan from rlraj to cover your rent and prevent an eviction. You can also utilize it to pay for some of the utilities. Though a payday loan can save you in need, it comes with substantial interest payments that make it expensive.
A payday loan is an unsecured form of cash advance that you should pay on your next paycheck. Most of them allow you to borrow less than $1,000. Apart from paying high-interest rates, the repayment terms of these loans are not suitable for everyone. If you are not stable, you may not manage to pay back the debt on time.
Payday lenders advertise themselves on radio, TV and even online to attract more borrowers. They offer loans in different forms, including check-advance loans, deferred-deposit loan, and post-dated check loans. States try to regulate the interest rates that loan lenders set for borrowers. Payday lenders have to comply with a specific Act that demands them to disclose the cost of the loan to each borrower. They must also state the annual percentage rate of the loan in writing before compelling a borrower to sign for it.
Though most of the operators in the US have storefronts for borrowers to visit, you can also apply for a payday loan from an online platform. The ease of access to this loan is one of the things that entices most people. Lenders do not consider your credit score to approve you for a payday loan. You only need a few documents such as a driver’s license, a blank check from your checkbook and ID for you to apply for a payday loan. Unlike other loan types, payday loans do not have extensive paperwork during the application process.
Some lenders ask you to authorize the automatic withdrawal of funds from your bank account when the repayment date is due. Most people with cash problems don’t have the means to pay back the debt within two weeks. They find themselves going back to the lender to ask for more time. Though you can get a repayment extension, this does not come without additional fees. You, therefore, end up sinking into more debt if you don’t pay the payday loan as agreed.
If you authorized the lender to withdraw the cash from your account, you might have to pay overdraft charges. This applies when there is no money in your account on the due date. The lender will make more than one attempt to withdraw funds. Most of the payday lenders are known to be ruthless when collecting debts. You should, therefore, try to look for other alternatives before applying for a payday loan.